Head of Green Development at Ministry of Environment gives details about new green loan fund

The National Committee for Air Pollution Reduction organized its regular meeting recently, focusing on the establishment of a green loan fund. T.Bulgan, Head of Green Development Policy at the Ministry of Environment and Tourism gave an interview about the potential establishment of a green development fund and what it would accomplish.

The green loan fund is being established to reduce air and environmental pollution. Can you tell us more specifically what the fund will do exactly?

As part of their 2016 to 2020 action plan and the National Agenda to Reduce Air and Environmental Pollution approved in March, Cabinet will be financing certain projects that include reducing heat loss and promoting energy preservation. Both the action plan and the agenda include articles about the government offering low interest flexible loans, the “green loans”.

The Ministry of Environment and Tourism has been working in conjunction with Mongol Bank towards establishing a green loan fund. All the preliminary preparation of the fund and its limitations has been determined.

When will the green loan fund be officially created and be operational?

During the research and development stage, the ministry worked closely with Mongol Bank and other commercial banks. Now, the ministry is working with other government agencies to make the fund a reality. Minister of Environment and Tourism D.Oyunkhorol established a joint working group with the Ministry of Finance to hopefully finalize the establishment of the fund before winter.

Initially, in order to urge more citizens to take advantage of the subsidized electricity rates offered in ger districts, the ministry will be providing discounted electric heaters.

Right as winter begins, this process will be in full swing. I want to point out that the ministry has conducted extensive research and preparation for the fund.

Will private businesses be able to submit their proposals for projects and receive financing?

Initially, we will be focusing more on projects that are designed to reduce air pollution. The fund will essentially fund any project that will improve the environment and reduce pollution.

Will only companies receive financing? Will it be possible for individuals to receive financing for projects?

One of the unique things about the green loan fund is that both private businesses and individuals will be able to receive financing for their green projects.